Trump Announces $12 Billion Farm Aid Package Amid Trade Challenges

Tue Dec 09 2025 13:23:52 GMT+0200 (Eastern European Standard Time)

President Trump's new farm aid initiative aims to support U.S. farmers affected by low crop prices and trade tensions, particularly with China.

In a recent announcement, President Trump unveiled a $12 billion aid package designed to support farmers facing economic difficulties due to low crop prices and ongoing trade disputes. The majority of the funds will go towards direct payments for row crops, as well as addressing problems caused by international tariffs. The aid comes at a time of fluctuating market conditions, and while it is welcomed by many farmers, concerns over its long-term effectiveness and distribution persist.

US President Donald Trump has unveiled a $12 billion (£9 billion) farm aid package aimed at helping farmers impacted by low crop prices and the administration's ongoing trade wars.

Most of the money – $11 billion – is earmarked for one-time payments to farmers for row crops as part of the agriculture department's Farmer Bridge Assistance programme, with another billion reserved for crops not covered by the programme.

While farmers have broadly supported Trump, the agriculture sector has been disrupted by trade disputes during his second term, particularly with China. Also on Monday, Trump threatened to hit Mexico with an additional 5% tariff in a row over water supplies to US farmers.

The White House says the aid package will help farmers suffering from years of unjustified trade actions and accumulated inflation. Trump made the announcement during an event at the White House, alongside Treasury Secretary Scott Bessent and Agriculture Secretary Brooke Rollins. Members of Congress and farmers from various sectors were also present.

Maximising domestic farm production is a big part of how we will make America affordable again and bring down grocery prices, Trump said.

Sorghum and soybean farmers have been hit hard by the Trump administration's trade dispute with China, which is the largest importer of their crops. The payments are intended to assist farmers in marketing this year's harvest and planning for next year's crops, acting as a bridge until the administration's policies improve market conditions.

The aid follows consistent requests from farmers who are feeling the strain of trade tensions and rising costs, marking a continuation of the support provided during Trump's first administration.

Many farmers expressed cautious optimism about the package, while underscoring that the real issues of high production costs and reduced markets remain a challenge.

Trump's announcement also coincided with rising public concern over living costs, indicating the administration's need to address agricultural stability amid fluctuating trade dynamics.